TORONTO (miningweekly.com) – Quebec-focused lithium project developer Canada Lithium, which is currently commissioning its Quebec lithium mine, in Quebec, has signed an offtake agreement with Japanese commodity trader Marubeni to supply lithium carbonate for three years.

Canada Lithium CEO Peter Secker on Thursday told Mining Weekly Online that Japan remains, by a significant margin, the world’s most developed market for lithium-ion batteries, with modern vehicles such as Toyota’s hybrid Prius and Nissan’s electric Leaf driving a new wave of strong demand for high-grade lithium.

Secker pointed out that the offtake agreement with Marubeni entailed about 25% of Canada Lithium’s production, comprising 2 000 t of lithium carbonate this year, 3 000 t in 2014 and 5 000 t in 2015.

The agreement provides for Marubeni to exclusively distribute Canada Lithium's battery-grade lithium carbonate in Japan for an initial three-year period, with the option to extend the agreement for another three-year term in 2016.

The first shipment to Marubeni would start in July, with Marubeni buying the lithium products free on rail in Val d'Or, Québec.

In November 2012, Canada Lithium inked a five-year offtake agreement with Tianjin Products and Energy Resources Development (Tewoo), one of China's larger commodities traders, for a yearly commitment of 12 000 t of battery-grade lithium carbonate beginning in March.

In the event Tewoo triggers a clause allowing for an additional 20% offtake in 2014, Canada Lithium could deliver to Tewoo up to a maximum of 14 400 t during 2014 and the following years, accounting for about 60% of Canada Lithium’s production.

Secker said that while a ‘skeleton’ construction crew remains at its Quebec lithium mine to finalise construction and assist with commissioning activities, which started in December, the company’s next milestone would be the first shipment of lithium carbonate at the end of March.

Full production from the 20 000 t/y lithium carbonate processing plant is scheduled for the fourth quarter of 2013.

The company’s TSX-listed stock traded 8.57% higher on Thursday afternoon at 76 Canadian cents apiece.